Warner: Estimates Raised, But "Song Remains the Same"

Goldman Sachs sees possible short-term upside for Warner Music
(WMG), but remains bearish about long-term prospects for the
music industry. "Stay on the sidelines until we have better
visibility into returns from new business initiatives..."
Goldman's Q2 revenue, EBITDA, and EPS forecasts for Warner: $760
million, $88 million and -$0.19. Goldman:

...we expect WMG to benefit from a positive content cycle,
driving a fifth consecutive quarter of yoy share gains. We focus
on new 3QFY08 releases from R.E.M. and Madonna to carry momentum
forward, and we are raising our FY2008 and FY2009 EBITDA
estimates to $450 mn and $443 mn, respectively to reflect
continued content-driven success... However, we believe continued
market share gains will become increasingly difficult and tepid
industry fundamentals will trump a favorable content cycle.